Liberty Steel’s plant in Dudelange, Luxembourg, is facing an uncertain future as it teeters on the brink of bankruptcy, following years of inactivity, delayed salaries, and a prolonged search for a potential investor. The plant, which has been out of operation for over two years, is now under serious financial strain, with trade unions warning that its closure seems inevitable without immediate intervention.

The plant’s dire situation began after production halted, with the company struggling to secure a new owner or sufficient government support. The lack of progress in finding a strategic investor has led to the possibility of the plant being placed under external management. Despite the Luxembourg government’s efforts to assume control of the company in the hope of facilitating a sale to a private investor, Liberty Steel rejected this offer, deeming it insufficient to resolve the financial crisis.

Trade unions have reported that the plant has not produced any goods or generated sales for more than two years, and salaries have been paid only with the support of Liberty Steel's parent company. However, the company has failed to meet the criteria for receiving state aid. In October 2024, Liberty Steel missed its first salary payment, delaying wages for 25 days. This has deepened the financial hardship of the employees, and the unions have expressed grave concern over the plant’s future, stating that the bankruptcy of both the Dudelange and Liège plants now appears inevitable.

The situation is further compounded by a downturn in the European steel market, which has made it increasingly difficult for Liberty Steel to find buyers or investors willing to take on the Dudelange and Liège facilities. The company has tried to negotiate with potential investors, but the lack of active production and the ongoing financial difficulties have left interested parties hesitant to proceed.

Currently, the Dudelange plant’s workforce has been reduced to around 150 employees, down from 300 previously. Many employees have retired, and others have left the company due to the uncertainty. Those remaining are engaged in basic maintenance work at the facility, which is no longer operating at full capacity. Despite the plant’s inactive status, some customers have shown interest in its products, but without an active production line or an investor, these potential deals remain unfulfilled.

Unions have voiced their frustration, calling on the Luxembourg government and the European Commission to intervene and secure the future of the plant. They have also initiated legal proceedings to recover unpaid wages for workers. The workers’ demands are growing more urgent as the financial stability of the plant erodes, with many concerned about the long-term implications of the ongoing crisis.

Liberty Steel, which has facilities across Europe, also plans to sell its Italian Magona plant, in addition to the Dudelange and Liège plants. The company’s total steel production capacity exceeds 2.5 million tons annually, but with mounting debts and ongoing struggles to secure investors, the company’s future remains in jeopardy. This precarious situation is further complicated by the recent court ruling in London, which granted ArcelorMittal the right to place Liberty Steel’s Eastern European division into administration due to an outstanding €140 million debt related to the 2019 acquisition of ArcelorMittal’s Eastern European assets.

With no clear path forward, Liberty Steel's Dudelange plant faces a turbulent and uncertain future. Without substantial intervention from stakeholders, the bankruptcy of the plant could soon become a reality, leaving hundreds of employees without jobs and contributing to the further destabilization of the European steel market.